What exactly is a microbusiness?

A microbusiness, also called a micro enterprise, is a business that operates on a very small scale, with fewer than 10 employees and an annual turnover of less than SGD1 million. It is the smallest of all businesses typically run by a single owner, requires less capital, and has lower business activity than most small businesses.

What are the advantages?

• Quick start: With fewer overheads and smaller operations you can get your business started quickly.
• Simple operation: Because of the small-scale nature of a microbusiness, running it tends to be less complex than other businesses.
• Low overhead costs: With less staff, fewer salaries and expenses will be incurred. And for online or home-based microbusinesses, there is no need to pay rent for a brick-and-mortar store.
• Specialisation: Microbusinesses often specialise in a certain area, allowing them to carve their own space within an industry and maximise their markets.
• Closer customer relationships: You might cater to only a handful of customers at first, but it is easier to build trust with a select few. They could then turn into loyal customers and spread the word about your business, which is the best marketing you can get.

• E-commerce: Take advantage of the e-commerce boom and sell your wares online — be it jewellery, knitted clothing, baked goods, or other custom or personalised products. You can create your own website with an e-commerce plug in like Shopify, or sell on online marketplaces such as Shopee, Lazada, and Amazon.
  
  
• Dropshipping: Compared to online selling, dropshipping involves purchasing items from third-party suppliers and delivering them directly to customers. As a middleman between customers and suppliers, you will not need to own inventory or stock up on products.
  
  
• Delivery services: As long as you have your own vehicle, you can offer delivery services to other businesses. You can deliver food, groceries, online orders, and other goods.
  
  
• Freelance professional services: These services may fall under the creative realm, including content creation, graphic design, photography, and videography. Or they might be more business-related, such as accounting, bookkeeping, or even software development.
  
  
• Digital services: With more businesses going online in today’s virtual era, they will need people who specialise in all things digital. You can be their online marketing specialist, social media manager, or web designer. Or you can be a virtual assistant, handling administrative tasks for clients.

How to set up a microbusiness

Setting up a microbusiness is the same as setting up any other business. After firming up your idea and outlining a business plan, you will need to register your business. Most microbusinesses will fall under the sole proprietor business category.

Make sure you have enough funding to cover the costs of starting your business. As a registered business, you have access to grants and loans offered by the government. You can also look into resources offered by private and non-government organisations, such as AMP’s Micro Business Programme.